ASSA-Irada,
26, May 2008

Azerbaijani and German businessmen gathered in Baku on Monday to look into ways of expanding economic cooperation.

The eighth business forum was attended by 40 representatives of 20 German companies operating in oil and gas, construction, chemical industry, trade, finance, and air transport sectors. The delegation was headed by Minister of Economic Affairs, Labor and Transport of the German State of Niedersachsen, Walter Hirche.

The event was organized by the Azerbaijan Ministries of Economic Development and Industry and Energy, the Germany-Azerbaijan economic assistance union DAWF and the Azerbaijan Export and Investment Promotion Foundation (AZPROMO).

Deputy Minister of Economic Development Mikayil Jabbarov said in his remarks that Azerbaijan is a leader in the world for Gross Domestic Product (GDP) growth and in CIS for investments per capita. The country's GDP grew 34.5 per cent in 2006 and 36 per cent in 2007.

Jabbarov said the business climate in Azerbaijan was being improved to draw more investment and extensive work was under way to boost entrepreneurial activity in the country. "Azerbaijan conducts trade transactions with about 140 states. $42 billion has been invested in the country to date, and foreign investments account for a lion's share of the amount. At the same time, there is vast potential to expand trade relations and these opportunities should be capitalized upon efficiently."

German Ambassador Peer Stanchina said cooperation between the two countries was on upward trend. The conduct of joint business forums twice in the past six months indicates high mutual interest of Germany and Azerbaijan. Bilateral trade turnover reached $1.5 billion in 2007, Stanchina said, citing existing potential to further increase the figure. He said Germany and its federal regions were interested in deepening their energy cooperation with Azerbaijan. "We are interested in Azerbaijan both as an exporter of energy resources and as a potential investor. Overall, the Caspian region could serve as a center for Europe in terms of exports of oil and gas.

Minister Hirche said businessmen should properly take advantage of the current forum. "We are aware that Germany has great influence in Azerbaijan. Thus, German goods - from foodstuffs to technology and automobiles - are preferred here more compared to other countries."

Entrepreneurs from the State of Niedersachsen are interested in implementing projects in Azerbaijan chiefly in the construction of main roads, mechanical engineering and construction sector. Hirche said the businessmen were exploring the business climate and talks would be held with various cabinet ministries for the purpose.

Germans are also looking to introduce the use of alternate sources of energy in Azerbaijan, given favorable conditions such as the abundance of small rivers in the country and windy weather in Baku and the Absheron Peninsula.

The agriculture sector is also in spotlight of German entrepreneurs, the minister said, adding that experts working in the field were represented well in the delegation he was heading. Azerbaijani businessmen are mainly interested in the region's above-ground and air transport, equipment and mechanical devices, as well as production of tobacco and alcoholic drinks.

Niedersachsen, which is one of Germany's 16 federal regions, has a population of about 8 million, approximately the same as that of Azerbaijan. Niedersachsen is one of Europe's centers of carmaking industry. The Volkswagen and Continental tyre producing plants are based in the region's center, Hanover. One of the largest European tourism companies, TUI, operates here as well. Twice a year, the world community's attention focuses on this city when it hosts the Hanover Industrial Trade Fair and CeBIT, the world's biggest ICT exhibitions.